MPs from Karnataka meet the finance minister on impact of SARFAESI Act on planters

Union Finance Minister Nirmala Sitharaman has instructed banks to stop the e-auction of coffee estates under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), according to the Karnataka Growers’ Federation (KGF).

The federation, in a press release issued on Thursday, stated that a delegation of members of Parliament representing Karnataka, including H.D. Deve Gowda, former Prime Minister, and Srinivasa Kota Poojary, Udupi-Chikkamagaluru MP, met with the Union Finance Minister in Delhi recently. The delegation explained the problems faced by coffee growers due to the SARFAESI Act. Many small growers who had borrowed loans from banks had been suffering because of the Act.

The banks had initiated an e-auction of the plantations of those who failed to clear the loans borrowed against the mortgaged plantations. The growers had been demanding that the plantations be kept out of the provisions of the Act.

During the meeting, the union minister informed the delegation, according to the KGF, that she would review the impact of the act on the plantations. She also instructed the banks to halt the e-auction.”

The delegation included members of Parliament C.N. Manjunath, Vishweshwara Hegde Kageri, and Mallesh Babu. KGF president Halase Shivanna and general secretary T.P. Surendra have thanked the MPs for their efforts in convincing the union minister on the issue.

The delegation from KGF had been in Delhi for three days, starting February 9. It met with Union Ministers H.D. Kumaraswamy, Bhupendra Yadav, and several MPs from Karnataka to discuss issues concerning the growers of Karnataka.